NYSE:GWRE

Stock Analysis Report

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Executive Summary

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. More Details

Risk Analysis

No risks detected for GWRE from our risk checks.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has Guidewire Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GWRE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

GWRE

-2.5%

US Software

-1.3%

US Market


1 Year Return

-4.8%

GWRE

64.0%

US Software

18.5%

US Market

Return vs Industry: GWRE underperformed the US Software industry which returned 64% over the past year.

Return vs Market: GWRE underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

GWREIndustryMarket
7 Day0.8%-2.5%-1.3%
30 Day-1.2%8.4%5.3%
90 Day-12.7%10.2%7.5%
1 Year-4.8%-4.8%65.1%64.0%21.3%18.5%
3 Year34.0%34.0%147.7%139.5%42.4%32.9%
5 Year75.1%75.1%254.0%233.3%84.2%63.5%

Price Volatility Vs. Market

How volatile is Guidewire Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Guidewire Software undervalued compared to its fair value and its price relative to the market?

5.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: GWRE ($103.69) is trading above our estimate of fair value ($21.45)

Significantly Below Fair Value: GWRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GWRE is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: GWRE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GWRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GWRE is good value based on its PB Ratio (5.2x) compared to the US Software industry average (7.4x).


Next Steps

Future Growth

How is Guidewire Software forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWRE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: GWRE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: GWRE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: GWRE's revenue (6.4% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: GWRE's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWRE's Return on Equity is forecast to be low in 3 years time (3.1%).


Next Steps

Past Performance

How has Guidewire Software performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWRE is currently unprofitable.

Growing Profit Margin: GWRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GWRE is unprofitable, and losses have increased over the past 5 years at a rate of 24.8% per year.

Accelerating Growth: Unable to compare GWRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GWRE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.8%).


Return on Equity

High ROE: GWRE has a negative Return on Equity (-1.64%), as it is currently unprofitable.


Next Steps

Financial Health

How is Guidewire Software's financial position?


Financial Position Analysis

Short Term Liabilities: GWRE's short term assets ($1.3B) exceed its short term liabilities ($225.2M).

Long Term Liabilities: GWRE's short term assets ($1.3B) exceed its long term liabilities ($482.9M).


Debt to Equity History and Analysis

Debt Level: GWRE's debt to equity ratio (19.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GWRE's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GWRE's debt is well covered by operating cash flow (34.2%).

Interest Coverage: Insufficient data to determine if GWRE's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Guidewire Software current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GWRE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GWRE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GWRE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GWRE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GWRE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Mike Rosenbaum (49 yo)

1.17yrs

Tenure

Mr. Michael George Rosenbaum, also known as Mike, has been the Chief Executive Officer and Director of Guidewire Software, Inc. since August 3, 2019. He served as the Executive Vice President of leading th ...


Leadership Team

NamePositionTenureCompensationOwnership
Marcus Ryu
Co-Founder & Chairman1.17yrsUS$4.56m0.022%
$ 1.9m
Priscilla Hung
President & COO0.33yrUS$3.43m0.0061%
$ 524.5k
James King
Chief Administrative Officer2.33yrsUS$2.34m0.0050%
$ 436.2k
Steven Sherry
Senior Vice President of Strategic Accounts0.33yrUS$4.05mno data
Curtis Smith
Consultant0.58yrUS$2.43m0.0054%
$ 465.7k
Michael Rosenbaum
CEO & Director1.17yrsno data0.019%
$ 1.6m
Jeffrey Cooper
Chief Financial Officer0.58yrno data0.0014%
$ 122.0k
Garo Toomajanian
Investor Relationsno datano datano data
Diana Stott
Director of Communications6.83yrsno datano data
Brian Desmond
Chief Marketing Officer5.08yrsno datano data
Frank O'Dowd
Chief Sales Officer0.33yrno datano data
Sinead Condon
Senior Vice President of People0.33yrno datano data

0.6yrs

Average Tenure

49yo

Average Age

Experienced Management: GWRE's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marcus Ryu
Co-Founder & Chairman1.17yrsUS$4.56m0.022%
$ 1.9m
Michael Rosenbaum
CEO & Director1.17yrsno data0.019%
$ 1.6m
Catherine Lego
Independent Director1.08yrsno data0.0030%
$ 258.8k
Michael Keller
Independent Director1.08yrsno data0.0011%
$ 92.6k
Paul Lavin
Lead Independent Director1.17yrsUS$254.73k0.0025%
$ 216.4k
Andrew Brown
Independent Director6.83yrsUS$258.23k0.0013%
$ 108.2k
Margaret Dillon
Independent Director1.08yrsno data0.0030%
$ 258.8k

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: GWRE's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Guidewire Software, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Guidewire Software, Inc.
  • Ticker: GWRE
  • Exchange: NYSE
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$8.655b
  • Shares outstanding: 83.47m
  • Website: https://www.guidewire.com

Number of Employees


Location

  • Guidewire Software, Inc.
  • 2850 South Delaware Street
  • Suite 400
  • San Mateo
  • California
  • 94403
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWRENYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2012
0GSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2012
0J1GLSE (London Stock Exchange)YesCommon StockGBUSDJan 2012

Biography

Guidewire Software, Inc. provides software products for property and casualty insurers worldwide. The company offers Guidewire InsuranceSuite comprising Guidewire PolicyCenter, BillingCenter, and ClaimCent ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 00:49
End of Day Share Price2020/10/20 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.